Should banks step in to rescue Sapura Energy?

THIS week, financially beleaguered oil and gas contractor Sapura Energy Bhd revealed its proposed regularisation plan where, upon being carried out, three local lenders may end up becoming substantial shareholders in the company.

The plan, which entails a capital reduction exercise together with debt restructuring, outlines a maximum scenario where, if all convertible securities are converted into ordinary shares, the Finance Ministry and three banks would hold substantial stakes in Sapura Energy – namely Maybank Islamic Bhd (16.31%), CIMB Bank Bhd (7.37%) and RHB Islamic Bank Bhd (5.8%).